CITIC will be officially renamed after taking over Huarongs trillion Huarong

">/> "Chinese respect" with a height of 528 meters, the official name is CITIC Building, is the highest building in Beijing, and is also the location of CITIC Group headquarters.Source: Visual China

Author | Wen Shijun

Edit | Chen Fu Ye

Produced | Prism · Tencent Xiaoman Studio

On November 28, China Huarong issued an announcement: The interim shareholders meeting will be held on December 15 to vote for the change of the company name.According to previously announced plans, China Huarong (CITIC Financial AMC) is planned to be renamed CITIC Financial AMC based on factors such as "overall strategic planning and positioning" and "enhancing brand influence".

China Huarong tries to completely clear the line with his past.The original Si Hui also abandoned it, and after renamed it, it will be hung on the sign of the current major shareholder CITIC Group.

After all, the word "China Huarong" is carrying the deep brand of former president Lai Xiaomin.

Three tons of cash were found in the home, and a total of 1.788 billion yuan of property was found, which was "the most corrupt cases since the founding of the People's Republic of China." This is several labels of the Lai Xiaomin case.Financial magazine also quoted the "three 100" statements of Lai Xiaomin: more than 100 suites, more than 100 relationships, and more than 100 lover.

On April 17, 2018, Lai Xiaomin was notified to the (formerly) CBRC "meeting" separated by the (formerly) CBRC separated from China Huarong Headquarters, which was taken away by relevant departments on the spot.At the end of the month, it was also the financial report that Lai Xiaomin personally reviewed and approved. As of the end of 2017, the scale of China Huarong's assets reached 1.87 trillion, ranking first in the AMC industry.

This is the first financial case that was officially handled after the establishment of the State Supervision Commission in March 2018.On October 15, Lai Xiaomin was doubled. He said on the spot: "How to punish (I) is not too much."

On January 5, 2021, the Tianjin Second Intermediate People's Court sentenced Lai Xiaomin to death for the first instance of bribery, corruption, and couple.Lai Xiaomin dissatisfied.The subsequent rhythm accelerated. On the 21st, the appeal was dismissed. On the 29th, Lai Xiaomin, who was 59 years old, was executed and became the first national staff to be executed for corruption after the 18th National Congress of the Communist Party of China.

The next day, on January 30, 2021, the People's Daily published a comment and said seriously: "Through the execution of the death penalty of the Ming Dynasty, Lai Xiaomin's case showed the determination of the right and anti -corruption."

Before this, China Huarong and even the entire AMC industry were not too familiar with the industry.After Lai Xiaomin's case, China Huarong opened a large -scale license. With the rename of this time, China Huarong, which has been in China for more than 20 years in China's AMC "Jianghu", eventually became history.

Of course, in front of the Emperor's ocean, this is just a small wave flower.

Who is AMC?Starting from the trillion -level "national bar"

China Huarong's rename of CITIC Financial Assets is worthy of attention -the new English name Citic Financial AMC, compared to the previous China Huarong, especially emphasized the identity of "AMC".

AMC is the abbreviation of English ASSET Management Company.But to know what AMC is, you can't just look at the name. You must understand the history of China's financial and banking industry.

Starting from 1978 to the People's Bank of China and the financial part of the financial part, the Bank of China has accumulated a large number of non -performing loans that cannot be recovered or difficult to recover in the process of gradually getting out of the original administrative system and marketization.

By 1998 and 1999, the non -performing loan ratio of state -owned commercial banks had reached 33%and 41%.At the same time, in the past few years, new risk factors have begun to superimposed:

Internationally, the warning of the Southeast Asian financial turmoil allowed the risks of the relatively vulnerable financial system in China at that time to be further exposed. China ’s application for joining the WTO negotiations is in difficulty.In China, 98 floods, state -owned enterprises restructuring, laid -offs, housing reforms, currency tightening ... all allowed high non -performing loans to build a more "healthy" and truly "commercialized" banking system.

A "national debt restructuring" kicked off.

The logic is very simple: if the loan cannot be recovered, then buy these "bad assets" from the bank, the bank can not throw away the historical burden, light up to battle, and move towards the 21st century?Essence

Who will buy it?

In March 1999, "Two Sessions", then Prime Minister Zhu Rongji of the State Council clearly stated in a government work report that "Establishing a financial asset management company, responsible for handling the original non -performing credit assets of the bank, strictly implemented the quality of new loans to banks, and strictly implemented the quality of new loans of loans.Responsibility system.

AMC (Financial Asset Management Company) began to appear on the stage of history.

In 1999, the four AMCs of Cinda, Huarong, Great Wall, and Oriental were established one after another.The four major AMCs took one -to -one, the original price took over 373 billion yuan, ICBC 407.7 billion, Agricultural Bank of China 345.8 billion, and 267.4 billion non -performing loans from China Bank.This move has reduced nearly 1.1 trillion yuan of non -performing loans at one time, and the overall non -performing rate has been reduced by nearly 10%.

Where does money come from?

As the only shareholder of the Ministry of Finance, the four major AMCs injected 10 billion yuan respectively. At the same time, the four major AMCs of the Central Finance Guarantee received a loan of 604.1 billion yuan in the central bank;In order to "make up" funds to buy non -performing loans.

This is a trillion -level "national lever": the non -performing assets of the four major banks disappear from the book and converted into the debt of four major AMCs.In March 2002, Dai Xianglong, then President of the People's Bank of China, announced that as of the end of 2001, the non -performing loan ratio of Chinese state -owned banks fell to 25.37%.

Daily Economic News once interviewed Mei Xingbao, the former president of Oriental Assets. He recalled: As the earliest four AMC employees came from the corresponding banks, "quickly receiving, fast disposal, and returning to the bank after the disposal" became a common at that time.idea.

But the problem is not so simple.The four major AMCs to deal with these banks that are also helpless old accounts are not easy. Besides, many of these non -performing assets come from the period of the planned economy transformation market economy. Not only are there a lot of historical loans that are not distinguished by the times, but some state -owned enterprises have long been in debt.Even disappeared during the reform.

Taking China Huarong as an example, from its establishment to September 2005, a total of 223.80 billion yuan in non -performing assets was disposed of, 45.52 billion yuan of recovery cash, and the recovery rate was only 20.34%. This has not yet calculated the recovery cost.In fact, at this stage, the four major AMCs are generally in a state of serious losses, and they also need to repay the credit credit of the central bank and the four major banks.

Mei Xingbao, the former president of Oriental Assets, also talked about some situations at the time in the aforementioned interview: as the four major banks changed the personnel system after the reconstruction of the joint -stock system, the employees of the four major AMCs "returned" to the bank was difficult.At the same time, the last welfare of the four major banks was about to be divided into house, and the hearts of people floated.

In 2005, Meixing Bao served as the president of Oriental Assets. Talking about the management ideas at the time: "The company's operations must be done, and the benefits must be up. There is no benefit, no one else can talk about."

Not to mention, according to the initial plan, the four major AMCs only last for ten years -for ten years, digesting trillions of debt.What should I do after ten years?

How can AMC great energy?"Gold Lord" with many financial licenses

Ten years later, Lai Xiaomin appeared.

Lai Xiaomin had previously worked in the financial regulatory authorities and went smoothly all the way.At the age of 17, he was admitted to Jiangxi University of Finance and Economics and graduated from the age of 21 to enter the People's Bank of China.Under the tide of "younger cadres", at the age of 24, he became the deputy director, the 32nd age became the director, and at the age of 35 became the deputy director of the Credit Management Department of the People's Bank of China, and entered the ranks of "senior cadres".

In April 2003, the (formerly) CBRC was established. Lai Xiaomin also participated in it and then served as the first director of the Beijing Banking Regulatory Bureau and secretary of the party committee.

Before he was the president of Huarong Assets, he was the director and chief press spokesman of the (formerly) CBRC, Lai Xiaomin's mouth was very good, and he often made a public seal speech.Even on the day when he was announced, he made a metaphor of the image while confessing the punishment "the bubbles on the feet came out of his own."

On January 19, 2009, Lai Xiaomin served as the president of Huarong Assets.

This year, he is 47 years old. He has been engaged in supervision for a long time. He is very clear about the dilemma of AMC at that time -the task of non -performing asset disposal has been over. How to go next?

In 2011, Lai Xiaomin once accepted an exclusive interview with Phoenix.com. He said very straightforwardly: "First, the policy business of non -performing asset disposal has gone, weaned, where did you go?. Second, the operating pressure is very high, and the profitability is very weak. "

Lai Xiaomin said: "The hero is the hero."He also said: "I used to be in the CBRC, the People's Bank of China, tens of thousands of dollars, and ten thousand (salary). I have to get it. Now here (Huarong Assets), the company is much better than in the past.It's much higher, so I said I am very satisfied. "

But he was not really satisfied. Huarong's assets and Lai Xiaomin himself also embarked on the way to return.

China Huarong Headquarters, which is located at the core of Beijing Financial Street, is separated from the streets of the (formerly) CBRC.Source: Visual China

The huge energy of the four major AMCs in the financial market, from the credit endorsement of the central enterprise, from its huge volume that can cross the economic cycle (many private enterprises fall on the economic cycle), from the "cheap" capital cost (Whether it is bank credit or debt issuance), the "Cyclonus Truth" from the last round of the financial industry as a whole.

But the most basic energy comes from the license.

Around 2005, the Ministry of Finance began to gradually allow the four major AMCs to conduct commercial exploration -but the commercialization business must be self -made profit and loss.Regardless of the needs of "for nationalized bonds" or the survival of the company, the "convenience" of the financial supervision environment and disposing of bad financial institutions at that time, the four major AMCs began to master financial licenses other than the disposal of non -performing assets.

For example, the Cinda Securities, which was just listed on the main board of the Shanghai Stock Exchange in 2023, was established in 2007.The license and the starting team came from the 2004 Cinda asset custody of the insurance securities firm Hantang Securities and Liaoning Securities.Huarong Securities was also established in 2007. It was formerly known as the "Delong" problem brokerage securities and Hengxin Securities, which was the "Delong Department" custody of Huarong Assets.

Mastering more financial licenses can participate in more financial services.When Lai Xiaomin took over as president, Huarong Assets already had Huarong Securities, Huarong Trust, and Huari Financial Lease License.

After Lai Xiaomin took office, this process undoubtedly accelerated:

In 2009, the reorganization of Zhuhai Hengqin Xindong Real Estate Industry Development Corporation was reorganized to set up real estate companies Huarong Real Estate.In 2010, reorganized Hunan Zhuzhou, Xiangtan, Hengyang, Yueyang City Commercial Bank and Shaoyang Credit Cooperative to establish Huarong Xiangjiang Bank; in the same year, the reorganization of Hainan Xinghai Futures Brokerage Co., Ltd.The platform joint venture set up a private equity fund company Huarong and Chongqing.

In 2011, Huarong Assets began to start a joint -stock system reform.

The second year of "China Huarong" was officially established, which represents the change of the role -from a policy financial institution, it officially became a market -oriented financial subject.In 2013, Huarong International was established in Hong Kong and became the main body of China Huarong's overseas bond issuance and investment.Huarong International bought two Hong Kong stock stocks in 2015 and 2016, and was renamed Huayong Financial Holdings and Huarong Investment. The former holds Hong Kong Finance 1, 4, 6, and 9 licenses.Essence

By the listing of the Hong Kong Stock Exchange in 2015, China Huarong no longer rely only on the "hard" non -performing asset disposal to grow into a huge "shadow bank" with many financial licenses.

In essence, China Huarong has become the most important role in the financial market at this time: "Golden Lord" -This is why everyone has worn Lai Xiaomin's threshold. Of course, they cannot come empty -handed.

Just as Lai Xiaomin later repented: "The financial industry deal with money every day, and the bosses in contact are several billion, hundreds of billions, and tens of billions.Let's say that I think I support him so much, and I have developed it for him, and I feel very normal myself. "

Taking people money, funds with people, and Wang Pinghua (also checked), the former chairman of Huarong International, said that it was the "Lao Lai Yizhi pen".At this time, risk control is not so important.

Without Huarong, but the adverse assets of the counter -cycle are still

On April 1, 2021, China Huarong issued an announcement in the Hong Kong Stock Exchange that it was suspended due to failure to submit the 2020 report on time.On August 18 of that year, China Huarong issued a "profit warning".On August 29th, the report of 2020 was late. In 2020, China Huarong confirmed that the loss of asset impairment was 107.755 billion yuan, and the group's net loss was 106.274 billion yuan, and the net loss attributable to the company's shareholders was 102.903 billion yuan.

If a simple calculation is made, China Huarong lost 280 million per day in 2020.

What shocked the outside world was: the previous year, that is, the 2019 financial report, China Huarong's net profit was still 1.424 billion yuan.A few days after this huge loser 2020 financial report was released, on August 31, 2021, China Huarong released the 2021 semi -annual report on time, and the profit was 1.624 billion yuan.

Financially, China Huarong puts all the huge losses in 2020.

This also means that with the Fa Fa's Fafa in early 2021, China Huarong's one -time "poustone" in the 2020 financial report has the "hole" left by Lai Xiaomin -for Lai Xiaomin's successor, this"Quick knife cuts chaos" is a helpless move, and it is also a "optimal" choice.

In this regard, China Huarong bluntly stated in the financial report: "In 2020, a serious loss formed by a large number of confirmation of impairment. This is a concentrated manifestation of the accumulation of stock risks during the period of Lai Xiaomin, and it is also a painful lesson that the company will always learn from the company's development history."

In fact, since Lai Xiaomin was investigated, it was the core regulatory idea to China Huarong, and even the four major AMCs "returning to the origin and focusing on the main business".

Just for China Huarong, due to the huge losses of 100 billion yuan, the transformation is more thorough:

On the one hand, the introduction of CITIC Group, a major shareholder.

On January 4, 2022, China Huarong resumed trading. At the same time, it was announced that through the introduction of strategic investors, the capital increased by 42 billion yuan.Although the amount is less than half of the previous one -time losses, the list of new shareholders is very bright: CITIC Group, Zhongbao Rongxin Private Equity Fund Co., Ltd. (National Life, Ping An Life is the first and second shareholders)ICBC Investment.At this time, the major shareholders of China Huarong were still the Ministry of Finance.

In March of the same year, the Ministry of Finance started 3%of China Huarong's shares held to increase capital to CITIC Group.That month, the CITIC department entered Huarong, a member of CITIC Group Party CommitteeDeputy General Manager Liu Zhengjun served as Secretary of the Party Committee and Chairman of the China Huarong Party Committee; Zhu Wenhui, deputy general manager of CITIC Group's Finance Department, served as a member of the party committee, deputy president, and chief financial officer.

Wang Zhanfeng, who Lai Xiaomin was appointed as the leader of China Huarong's "Consumer Cabinet", was transferred to the secretary of the Chinese Oriental Party Committee and chairman.

In early 2023, the transfer registration of 3%of the Ministry of Finance was completed, and the proportion of CITIC Group's shareholding on China Huarong rose to 26.46%, officially becoming the largest shareholder.

Today, open the official website of China Huarong. Among the top ten people in the leadership team, there are five people from CITIC Group, and Huarong executives who have really experienced the time of Lai Xiaomin have only Gao Gui, the assistant to the president.Under such circumstances, China Huarong renamed CITIC Financial Assets.

On the other hand, the clear license.

On November 15, 2023, China Huarong announced the phased "achievement" in the Hong Kong Stock Exchange: China Huarong listed 8 licenses transferred its actual control.As of the announcement date, Huarong Zhongguancun Nvery Assets Trading Center, Huarong Consumer Finance, Huarong Securities, Huarong Xiangjiang Bank, Huarong Trust, and Huarong Trust have been sold.

Returning to the main business is a hard requirement, and the return funds can indeed alleviate the need for a while.And for the "CITIC Financial Assets" that changes the face and rely on CITIC Group's full -brand financial carrier, these licenses do have no meaning and value.In other words, CITIC Group has made up a national AMC license.

Bad asset business is a business of counter -cycle. In the face of CITIC Financial Assets in the future, this round of real estate will bring a new "opportunity":

On November 21, Sunac China issued an announcement that China Huarong will provide 3.48 billion yuan to Sunac's Shanghai Yalong project."Insurance to pay" can also make money.